Wyndham Hotels & Resorts, a global leader in hospitality, reported a strong performance for the third quarter of 2024, highlighting significant growth in its development pipeline and system-wide room expansion. The company’s results underscored its strategy to expand the brand's footprint and enhance shareholder value, even amidst a complex economic environment.

System-wide rooms increased by 4% from the previous year, with more than 17,000 rooms opened globally, including a 15% year-over-year increase in the U.S. The company awarded 197 development contracts this quarter, bringing its pipeline to a record 248,000 rooms across 2,100 hotels—a 5% year-over-year growth. CEO Geoff Ballotti emphasized, "Our teams around the world once again delivered exceptional results, executing our long-term growth strategy and achieving 7% growth in comparable adjusted EBITDA fueled by continued system expansion, higher royalty rates, and growth in our ancillary revenues.”

Wyndham’s ECHO Suites Extended Stay brand contributed significantly to growth, now representing 14% of the development pipeline. This brand has achieved strong market reception since its 2022 launch, with over 280 contracts awarded to date. The extended-stay segment maintained a robust 63% occupancy rate and average guest stays of 55 nights, signaling sustained demand.

Internationally, Wyndham saw a 7% increase in RevPAR driven by pricing power and increased occupancy. The EMEA, Latin America, and Canada regions together posted a 13% RevPAR growth, while the U.S. market maintained consistent occupancy, reflecting resilient demand in the select-service sector. However, Asia-Pacific (APAC) RevPAR dropped by 7%, though it showed sequential improvement.

Financially, Wyndham posted a net income of $102 million for Q3, with adjusted EBITDA up by 4% to $208 million. Diluted earnings per share rose to $1.29, up 7% from last year, supported by the company’s share buyback efforts. Wyndham returned $126 million to shareholders through share repurchases and quarterly dividends of $0.38 per share.

With a healthy balance sheet, Wyndham ended Q3 with $72 million in cash and $750 million in total liquidity. The company strategically expanded its share repurchase program, buying back 1.3 million shares this quarter. Ballotti concluded, “Stabilizing RevPAR trends and improving comparisons, coupled with increased infrastructure demand, are expected to pave the way for improved results in the coming quarters. We remain steadfast in our long-term strategy, aimed at delivering outstanding value to our guests, franchisees, and shareholders.”

Key Metrics and Outlook:

• System-wide room growth: 4% year-over-year

• Development pipeline: 5% increase, totaling 248,000 rooms

• Q3 diluted EPS: Increased by 7% to $1.29

• RevPAR: Up 1% globally, with 7% international growth

• Total liquidity: $750 million, with a net debt leverage ratio of 3.5x

Wyndham’s forward momentum, marked by continued brand expansion, international growth, and focus on shareholder returns, places the company on a steady path toward achieving its full-year 2024 outlook.

Bengaluru-based Kalyani Developers, also known as Kalyani Tech Park Pvt Ltd, has announced an ambitious plan to invest INR 800 crores in the hospitality sector, specifically focusing on the development of two hotels with 300 rooms each in North Bengaluru. This strategic move aims to enhance the region's reputation as a premier destination for both leisure and business travelers.

In addition to the hospitality investments, Kalyani Developers is making its foray into the residential sector, unveiling plans for three new projects in North Bengaluru, Whitefield, and Kanakapura Main Road. The company is also set to embark on a mixed-use development project in Hyderabad, which underscores its commitment to creating vibrant living and business environments.

A Mohan Raju, managing director and CEO of Kalyani Developers, commented on the company's growth strategy: “Over the past three decades, we’ve established a strong reputation in commercial real estate, hospitality, automobile, and renewable energy, consistently delivering value through our commitment to quality, innovation, and customer satisfaction. The residential sector presents a significant opportunity for us to leverage this legacy and expertise, aligning with shifting market dynamics and consumer expectations.”

Raju emphasized that North Bengaluru was chosen for the first residential launch due to its rapid development and emergence as a key real estate hub. He stated, “This focused investment plan will ensure that each project embodies our commitment to quality, innovation, and long-term value creation for homeowners and investors alike.”

Kalyani Developers will manage the construction of all projects through its in-house team, which boasts over 30 years of expertise in delivering more than 12 million square feet of commercial spaces. The team, now led by experienced professionals in residential construction, is dedicated to executing projects to the highest standards with timely delivery.

Looking ahead, Raju noted that the residential sector is expected to become a significant contributor to Kalyani Developers' overall business strategy. While the company’s commercial and hospitality verticals continue to thrive, the new residential projects are poised to play a pivotal role in the firm's growth trajectory.

Allana Group and Chatha Food Limited (CFL) have officially signed a term sheet to form a joint venture (JV) that will focus on manufacturing and selling ready-to-cook and ready-to-eat meat and chicken products. The new facility will have a production capacity of 500 metric tons for ready-to-cook items and 375 metric tons for ready-to-eat products per month. The project is estimated to cost between INR 80-100 crore, which will be financed through a combination of debt and equity.

According to the agreement, Allana Group will own a 30% equity stake in the JV, while CFL will hold the remaining 70%. The plant will produce a wide variety of ready-to-eat foods, including finger foods and savory non-vegetarian snacks, catering to both domestic and international markets.

Manish Muley, CEO of Allana Group, commented on the growing demand for value-added ready-to-cook products, noting the shift in consumer preferences toward convenience and healthier options. He stated, “By joining forces with CFPL, we are strategically positioning ourselves to capitalize on this growing overseas market opportunity. This partnership will enable us to enhance our product portfolio, optimize our supply chain, and strengthen our market position globally. Together, we aim to create a value proposition that caters to the evolving needs of consumers while delivering exceptional returns to our stakeholders.” Muley also mentioned that the plant is expected to be fully operational by the end of 2025.

Paramjit Singh Chatha, Managing Director of Chatha Food Limited, highlighted the company’s dedication to producing high-quality processed meat products since its inception in 1997. He added that the partnership with Allana Group represents a natural step forward in CFL’s commitment to the meat processing industry. “Together, we aim to redefine industry standards, expand our reach, and create a sustainable future for the Indian meat processing sector,” Chatha remarked.

About Allana Group 

Founded in 1865, Allana Group is India's largest exporter of processed food products and agro-commodities. The company supplies a wide range of items, including frozen Halal red meat, processed fruits and vegetables, and coffee. With exports to over 85 countries, Allana Group has a long history of quality and innovation in the global food industry.